Now that you have finally found your dream house, it’s time to make your offer. This part is immensely crucial since verbal promises or handshakes won’t cut it. Making an offer is no easy feat; after all, this is probably one of the most vital purchases you’ll ever make in your entire life, so you need to get it right the first time around.
What Your Purchase Offer Should Contain
If the seller accepts your purchase offer, it will become a purchase agreement, which is a legally binding sales contract. Therefore, it’s very crucial that it contains every single element required to act as a map for the sale. That said, you purchase offers must include these vital details:
- The sale price
- Address that property’s legal description
- Payment terms – for instance, if the sale is subject to the buyer obtaining funding to cover the purchase or if the transaction will be done on a cash basis, notes a loan officer from a well-known mortgage company in Portland.
- Target closing date
- The promise of the seller to give you clear ownership or title
- Your earnest money deposit amount and how you’ll get your money back if the seller rejects your offer, or forfeited if you suddenly decide not to buy the property.
- How real estate taxes, utility bills, rents, etc. will be prorated or adjusted between you and the seller
- The specific type of deed you’ll get
- Provisions regarding who should pay for the land survey, title insurance, required inspections, etc.
- Contingencies, mainly regarding home inspections and financing
- An expiration date or time limit on your offer
- Other requirements particular to your state
How to Negotiate The Purchase Price
Depending on the results of the property inspection, you might be able to reduce seller’s asking price or request that the seller makes repairs to the property. You should also know that you’d be in a much better bargaining position if these conditions apply to you:
- You don’t need to sell an existing property before you can even afford to purchase the property
- You’ve already been preapproved for a home loan
- You’re an all-cash buyer
On the other hand, if the property is located in a hot market, the minute you feel that it’s the perfect home for you, don’t hesitate to make an offer for the list price, or more if you can afford it to increase the chances of the seller accepting your offer.
Sealing The Deal
Once you’re confident that everything’s in order send your offer directly to the seller or through his or her real estate broker. The seller will accept your offer, send you a counteroffer, or reject your offer. If you receive a counteroffer, the seller will most likely propose a revised purchase price. You could either submit a counteroffer of your own or accept the counteroffer. Keep in mind that once you have agreed with the seller, your purchase offer will become a legally binding sales contract, so it is critical that you consult with an attorney to make sure that you understand everything before closing on the sale.